Beyond Meat - BYND - Share Chat

Share price has risen $7 in the past couple of days. They’ve blamed Covid for reducing their point of sale opportunities - which does make a lot of sense given that they’re partnered with KFC, Pizza Hut and McDonalds to name just three - and in terms of physical retail (the packs of meat), people who order online tend to stick to what they know.

Additionally as it’s one of the most heavily shorted stocks, there is always the potential for a short squeeze as shorters sense the tide turning and wish to maximise their profits, sparking a rush.

Break-even price for me is $50 and if it dips below $40 I’ll be open to averaging down a little more. I think the 2020-2021 peaks of nearly $200 a share were premature and poor 2021 financials won’t help the price rise to those heights quickly, but IMO this will be hovering between two and three figures before too long.

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It’s just my opinion but I’ve got to say I was really disappointed by the McPlant and, on the flip side, blown away by how good Burger King’s plant based whopper is and how indistinguishable from chicken their plant based ‘chicken Royale’ is.

Obviously I don’t eat beef burgers because I’m not a cannibal but I have been eating veggie burgers for a long time and the McPlant was so so SO underwhelming.

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So just like a maccies beef burger then :joy:

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I thought it was alright, not worse than all the normal burgers. Would definitely go for it again if I need to eat at MCD.
Beyond Meat is still a great product and good company. The valuation was just extreme before it started falling.

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Market Too competitive, I doubt the share price will ever bounce back.

There would need to be a big technology break through where the cost is a fraction of meat

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Once had a Beyond Meat burger at Wetherspoons … really enjoyed it.

The major issue I see, (outside of company performance - haven’t looked) is that you have the big boys such as Nestlé muscling in on the action.

They have the means to innovate & market at a rapid rate & will (probably) get guaranteed shelf space for their products.

I’m all for sustainable food, but it’s a very competitive area… Beyond Meat need to really stand out & have a uniqueness to grab a decent (profitable) market share.

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Same concern here, I was amazed by Beyond when I first tried it and bought an embarrassing amount once it came to the UK.

I have made it my mission to try as many plant-based burgers as I can (at home and out) and in the last few years some surprisingly strong contenders have launched. It’s not just the big brands like Impossible, Wicked, Moving Mountains etc… just regular Aldi No beef and Tesco are actually really good.

I’m surprised how quickly the others caught up and I’m not sure if there is enough moat left for Beyond unfortunately.

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I’m 35% down and holding until I get more of an improvement then will sell. I just don’t see it returning to its highs of over $100 now. I tried their burgers for the first time a few months ago and was blown away with how meat like it was. Issue is the price and the other competitors out there.

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I wanted to buy shares in this pre IPO, I didn’t when it eventually came to Freetrade because it seemed overvalued and I felt we’d missed the boat. Glad I didn’t now, there is loads of competition out there and it’s still valued at nearly $3Bn, for a loss making food manufacturer.

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Miss on earnings per share and miss on net revenue.
Shares down 7% at market close and flat after hours.

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CFO & COO amongst the job cuts.

I tried them (burger) did comparison with the butcher’s pork burger and the game butcher’s game burger’s.
No thanks, no where nears as good. Dry like reused barbecue buggers. To dry and didn’t taste like…meat.
I would have thought that a vegetable burger would work out cheaper than meat burger?
You constantly hear the vegan/vegetarian saying they use less resources.
Maybe its the processing that increases the costs?

No, it’s economies of scale. Everything that’s produced in fewer units is more expensive until it reaches a certain market size. If as many people ate vegetarian burgers, production plants would scale and the price would be much lower than the meat ones.

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As @SebReitz said, scale matters, but another consideration is the costs of what you’re comparing it to. Meat is subsidised (to varying degrees) and so what you’re paying in the store for meat is not a fair comparison, a fair comparison would be subsidy-less meat. Animal agriculture isn’t the only place where subsidies apply, there’s definitely some subsidy influence on the price of meat alternatives, but my understanding is that it’s much less impactful.

As taxpayers, we’re paying for meat, whether we eat it or not – to the tune of billions of pounds per year. A government could decide to cut subsidies for animal agriculture and introduce them for plant-based inputs in order to promote the consumption of plant-based alternatives by reducing the costs of those products.

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I thought all farming including arable was subsidised? My neighbour is agronomist he says all farming is subsidised. Is he wrong?
As an aside my butcher is cheaper and he makes them himself so I don’t think he has economy of scale.

Your butcher doesn’t grow the meat mate, he just hacks it into pieces.

And he hasn’t got the economy of scale either. Unlike the mass produced veggie burger manufacturers have (relative to the butcher). And arable farming is subsidised, despite what you say.
And I would appreciate if you didn’t refer to me as your mate.

You are right. Pretty much all farming is subsidised.

Your point about your Butcher’s lack of scale is interesting. It is a fair one. However, I would argue that it doesn’t mean much here. Why? The question is what would happen to his costs as the number of his customers increased? Probably, his mode of business would not scale linearly. But the argument that @SebReitz is making more significant: it is not so much about the butcher himself but about the production of the meat itself. And @SebReitz is fully right. There are certain fixed costs that don’t change whether you are raising one cow or ten (for example). Sure there are fixed costs with cereals or plants (he doesn’t suggest otherwise in his argument above).